Mastering Effective Progressive Discipline in a Small Business
Managing employee performance and behavior can be daunting! Implementing a progressive discipline process can help you address issues consistently while maintaining a fair work environment and staying out of legal trouble. Just over half of employees at 52% have experienced or witnessed inappropriate, unethical or illegal behaviors at work. The most prevalent of these behaviors was bullying at 51%. This should never be tolerated in the workplace. Let's explore what progressive discipline is, why it matters, and how to handle it effectively.
What is Progressive Discipline?
Progressive discipline is a structured approach used by employers to address and correct employee performance or behavior issues. It typically involves a series of escalating steps, starting with informal discussions or coaching and progressing to more formal interventions, such as written warnings, suspensions, and ultimately, termination if necessary.
The primary goal of progressive discipline is to help employees understand the expectations of their role, identify areas for improvement, and provide them with opportunities to correct their behavior or performance. By providing clear feedback and guidance, employers can give employees the chance to succeed while also protecting the interests of the business.
We hear many business owners say: I’m in an at-will state, so I just terminate employees immediately who violate polices. Not completely true! Although most employers are “at will” meaning you may legally terminate employees for no reason, it is against federal and state laws to terminate an employee because of their race, color, religion, sex (including pregnancy, sexual orientation, or gender identity), national origin, age (40 or older), disability, and genetic information (including family medical history). Certain states also have their own protected classes of people, so be sure to consult with CPR for help. Terminating an employee for one of these reasons is discrimination and is sure to land you a lawsuit or settlement with the Equal Employment Opportunity Commission (EEOC), another federal or state agency, or an attorney.
Why is Progressive Discipline Important?
Small business owners may not realize that their procedures and practices can inadvertently lead to discrimination. Inconsistent approaches to addressing employee performance or behavior could result in wrongful termination lawsuits. For example, you terminate one employee immediately for violating the attendance policy but you give a warning to another. The employee immediately terminated could claim discrimination because you didn’t handle the discipline for the same infraction consistently. Such lawsuits can affect a small business's reputation and have financial consequences. It is important for small business owners to understand these impacts to protect against potential legal and financial issues.
Implementing a progressive discipline process is essential for several reasons:
Promotes consistency and fairness in how employee issues are addressed, ensuring that all employees are treated equitably.
Helps protect your business from potential legal risks by documenting efforts to address performance or behavior issues in a systematic manner.
Serves as a tool for employee development and improvement, helping employees grow and succeed in their roles.
Implementing Progressive Discipline
We’ve worked with many small business owners and managers on implementing a progressive discipline process. Progressive discipline can be a complex process for small business owners to handle, so please contact CPR if you need assistance. So, how can small business owners effectively implement the progressive discipline process? Here are some key steps to consider:
1.Set Clear Expectations
Start by clearly communicating performance expectations and behavioral standards to employees from the outset - typically upon hire. The good news is that the majority of employees (65%) want more clearly defined goals, tasks and responsibilities. Provide employees with job descriptions, performance goals, and company policies, and ensure they understand what is expected of them in their role. This is best done during the employee’s new hire orientation, so they know as early as possible what is expected of them. This removes the onus being on you to prove if the employee knew what was expected of them.
If an employee demonstrates poor performance or unprofessional behavior, you should first ask yourself: “Have I clearly set the expectation for the employee?” If you cannot confidently answer “yes,” go back to the drawing board and set the expectation with the employee (in writing preferably) before engaging in the progressive discipline process.
2. Address Issues Promptly
Far too often small business owners and managers assume they do not have the time to address issues, but they do not have the time NOT to. In our experience, issues do not get better over time - they get worse! Address performance or behavior issues as soon as they arise, rather than letting them escalate. Here’s how:
Prepare specific examples of the employee’s issues, focusing on specifically what they did/are doing and when.
Schedule a private meeting with the employee.
Discuss the expectation, their issues and provide examples.
Provide the employee an opportunity to respond, if appropriate.
Offer constructive feedback, focusing on the behavior or performance, not the individual.
Be specific by clearly communicating what needs to change and by when.
Work together to identify solutions.
Schedule check-ins to monitor progress.
3. Document Everything
We like to tell our small business owners and managers, “If it isn’t documented, it didn’t happen.” Keep detailed records of all discussions, warnings, and interventions related to employee performance or behavior. Get into the habit of documenting these three critical items:
The date and time.
A summary of the meeting/discussion.
The outcome of the meeting/discussion to include any agreements, resolutions, or action plans developed.
The easiest way to document an initial discussion is to send an email to the employee with the information above and save for your records. This ensures the employee has a copy of the documentation as well showing that you have set the expectation for the employee in writing. This documentation will serve as a crucial reference in the event of further disciplinary action or legal proceedings.
4. Follow a Progressive Approach
If the issue persists despite informal interventions, follow a progressive approach to discipline. A progressive approach is important in providing the employee a fair opportunity to fix their behavior and performance and keeps you out of legal trouble. Our recommended process is outline below. Start with verbal warnings or written reprimands, clearly outlining the issue, expected improvements, and potential consequences if the behavior or performance does not improve. Progress to more severe interventions, such as suspension or demotion, if necessary.
5. Provide Support and Guidance
Don’t leave the employee hanging by failing to provide support. Offer support and guidance to employees throughout the progressive discipline process. Provide opportunities for training, coaching, or additional resources to help employees address performance gaps or behavioral issues. Encourage open communication and collaboration to find mutually beneficial solutions and adjust along the way.
6. Be Consistent and Fair
Apply progressive discipline consistently and fairly across all employees, regardless of their position or tenure with the company. Avoid showing favoritism or discriminating. All levels of your company should be rendered comparable discipline for similar infractions. Ensure that disciplinary actions are proportionate to the severity of the issue. For example, terminating an employee for failing to call in sick once is not proportionate discipline. You may want to start with verbally counseling the employee first, then progress in the disciplinary process with further incidents. Treat all employees with dignity and respect throughout the process.
7. Skipping Progressive Discipline
In your employee handbook, indicate that progressive discipline is only for guidance and the employer retains the right to skip steps in the progressive discipline process at any time, at its sole discretion. This protects you in the event you may need to skip straight to termination in specific cases.
There are certain times when you can skip the progressive discipline process and immediate termination is acceptable. These instances are when the safety of your employees is at stake, the danger of your company’s proprietary or confidential information is at stake, or behavior that may undermine your ability to trust the employee. Notwithstanding state law or collective bargaining agreements, the following reasons are typical reasons for considering immediate termination of an employee (not an exhaustive list):
Dishonesty or falsification of records
Willful destruction of property
Violence such as fighting or assault
Being under the influence of, possessing, selling or using illegal drugs or alcohol on company property
Possession of weapons on company property
Theft
Threats
Sexual harassment
Final Thoughts
Remember, the goal of progressive discipline is not to punish employees but to help them succeed and contribute to your business's success. By implementing a fair and consistent process, you can address performance issues effectively while maintaining a positive work environment.
Implementing progressive discipline may seem challenging at first, but with consistency, it can become a valuable tool for managing your team and fostering a culture of accountability and growth in your small business.
Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.
